Aon launches IFRS 17 solution for ReMetrica

Published in: Capital Models, Accounting - tax, Software - IT, IFRS 17

Companies: Aon

Aon has added components to its ReMetrica capital modelling platform to help insurers implement IFRS 17, the accounting standard for insurance contracts.

The company says more than 1,000 re/insurers worldwide will report under the new standard, due to come into effect in January 2022.

Reporting under IFRS 17 will require much more input from the actuarial function than before, in calculating and reporting insurance reserves, reinsurance recoverables and forward-looking profitability.

Aon said: “The increased volume of data and complexity of calculation required for IFRS 17 mean that actuaries can no longer rely on manual processes and spreadsheets as they feed business-critical inputs into accounting systems. As a result, insurers need to invest in new technology to bridge the gap between risk and finance.”

ReMetrica’s new IFRS 17 components can support actuaries by automating calculations and cash flow projections with flexibility and a transparent audit trail, according to Aon. They can also help carry out an eligibility test for the simplified model, and identify if a contract is onerous and track its account balance over time.

Milena Lacheta, IFRS 17 lead at Aon’s Reinsurance Solutions business, said: “The new solution helps to bring finance and risk departments closer together to deliver more accurate reporting under IFRS 17. These outcomes go beyond a regulatory checklist to help strengthen insurers’ capital, reinsurance programmes and ratings that will ultimately optimise the new balance sheet and profit & loss.”

Christopher Cundy